Airlines seek to balance competitive fares and rising fuel prices

If you’re wondering why airfares are relatively low at the moment, the answer is that there are a lot of inexpensive seats being offered by what’s called “ultra-low cost carriers.” Those fares from airlines like Frontier and Spirit are keeping the market competitive for bigger airlines, and passengers are benefiting. But with rising oil (and, airplane fuel) costs, the airlines may decide to raise prices, especially after the summer vacation season ends, analysts said. So what might all this mean for airline profits?

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